APS reports improved profitability, BOV declares 3c dividend

The MSE Equity Price Index gained 0.24% to 3,598.649 points as the gains in AX Real Estate, BOV, HSBC, Malita and PG outweighed the declines in APS and Mapfre. Meanwhile, Malta International Airport plc held the €5.45 level on trivial volumes. Download today’s Equity Market Summary.

APS Bank plc shed 2.5% to an all-time low of €0.575, after partially recovering from an intraday low of €0.57 (-3.4%) across three trades totalling 12,076 shares. Today, APS published its financial results for the nine-month period ended 30 September. Net interest income surged by 18.9% to €55.5 million driven by the continued growth in the loan book and the higher interest rates on fixed-income and liquid securities. APS also recorded strong growth of 13.9% in net fee and commission income to €6.2 million reflecting the general increase in banking activities to a wider customer base. APS also registered gains of around €1.1 million on other financial assets, foreign exchange and other income. The Group also recorded a marginal net impairment charge of €0.25 million. As such, net operating income improved to €62.6 million compared to €44.9 million in the first nine months of 2022. Overall, the Group reported a net profit of €15 million, which translates into an annualised return on average equity of 7.4%. When compared to 31 December 2022, shareholders’ funds increased by 5.9% to €265.2 million, which translates into a net asset value per share of €0.702. Yesterday, APS published a Base Prospectus and Final Terms relating to the issuance of up to €50 million 5.8% unsecured subordinated bonds maturing between 2028 and 2033. The Intermediaries’ Offer is set to open on Monday 30 October until Friday 17 November and since the bonds are considered complex products, prospective investors wishing to participate will be subjected to a Suitability Assessment.

The only other negative performing equity today was Mapfre Middlesea plc as it slumped by 5.4% to a multi-year low of €1.23 across three deals totalling 5,560 shares.

Meanwhile, Bank of Valletta plc moved 0.8% higher to the €1.24 level across five trades totalling 13,001 shares. Following the close of today’s trading session, BOV announced that the company’s Board of Directors resolved to distribute a net interim dividend of €0.03 per share, subject to regulatory approval. Shareholders of BOV as of the close of trading on Friday 17 November will be entitled to receive the dividend payable on Wednesday 6 December.

Also in the banking sector, HSBC Bank Malta plc advanced by 0.9% to the €1.15 level on four deals totalling 28,217 shares.

Malita Investments plc gained 3% to a one-week high of €0.515 on a single trade of 4,625 shares.

Also in the property sector, AX Real Estate plc climbed 0.4% to €0.452 on one deal of 1,023 shares.

PG plc rebounded by 5.8% to an almost one-month high of €2.02 as 9,860 shares changed hands.

The RF MGS Index decreased by 0.45% to 845.311 points. Today, the ECB decided to keep its interest rates unchanged following ten consecutive hikes since July 2022. The decision was in line with expectations as the ECB had already indicated that rates are already set at high enough levels to tame inflation. Nonetheless, the ECB indicated that it will maintain the current levels for a sufficiently long period to ensure that the restrictive levels continue to lower inflation. Meanwhile in the US, the economy grew by an annualised 4.9% during the third quarter, higher than expected and the largest growth since the last quarter of 2021.  The US economy benefitted from high consumer spending, government spending, and a rebound in exports.

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.